Fenix Resources (FEX) investor relations material

Executive summary

• Q1 FY27 marked the transition to Beebyn Hub operations, with record total material moved of 5,594k wmt, zero LTIs and TRIFR of 3.9.

• Beebyn Hub’s maiden Ore Reserve of 26.9Mt at 60.0% Fe supports more than five years of mine life at current production rates.

• The September quarter was a peak investment period; adverse weather, softer iron ore prices and higher fuel costs pressured shipments and unit costs.

Financial highlights

• Q1 operating cash flow was A$3.9m and cash closed at A$43.2m, down from A$81.0m at 30 June after peak investment; A$17.0m of shipment proceeds arrived in October.

• Q1 capital expenditure was A$23.6m, including A$19.0m for Weld Range expansion and the Beebyn plant; A$14.3m was also capitalised for W11 waste movement.

• A$45m of growth capital was spent in the quarter, including Sinosteel payments and capital expenditure; a second A$20m Right to Mine payment was made to Sinosteel.

• Iron ore swaps closed, crystallising A$10m cash; FY26 revenue was A$589.7m, EBITDA A$80.7m and NPAT A$12.3m, up 87%, 49% and 128% YoY, respectively.

Outlook and guidance

• FY27 guidance remains 4.7–5.3Mt iron ore sales and A$70–80/wmt C1 cash costs FOB Geraldton; unit costs are expected within guidance in H2 as volumes normalise.

• The commissioned 5Mtpa Beebyn plant is expected to fully ramp up in the December quarter; the FY26–FY28 plan targets production up to 6Mtpa by FY28.

• Higher production and shipments are expected to improve H2 FY27 operating cash flow at current iron ore and fuel prices; the 5Mtpa ambition is targeted this year.

• The 290Mt Weld Range 10Mtpa DFS and funding solution are targeted for H1 CY2027, with FID expected during 2028; project production is not expected until the 2030s.